(Bloomberg) -- UniCredit SpA’s move on Commerzbank AG will probably come to a head once the Italian lender gets approval from the European Central Bank to increase its existing stake, a Mediobanca analyst said.
The ECB nod “should be a catalyst for the deal,” Andrea Filtri said in a note on Wednesday. A combination is “sensible both financially and strategically,” he said.
UniCredit has built a holding of 21% in Commerzbank, largely through taking out derivatives, and said it’s considering an acquisition. It has since filed an application with the ECB to lift its physical stake to as much as 29.9%.
Commerzbank has indicated it’s opposed to the deal and the German government has come out against it too.
UniCredit’s physical stake in Commerzbank is currently just below 10% and it needs ECB approval to raise it beyond that threshold. That application has been filed with the local regulator Bafin, which makes sure the paperwork is complete before forwarding it to the ECB. The ECB subsequently has 60 working days to hand down a decision, though further delays are possible.
A potential takeover bid by UniCredit for Commerzbank would likely get regulatory approval, several senior central bank and supervision officials have privately indicated, Bloomberg reported last week.
--With assistance from Sonia Sirletti.
©2024 Bloomberg L.P.